Poloniex exchange and Justin Sun support the Ethereum PoW fork
A leading Chinese cryptocurrency miner, Chandler Guo, has announced he will be resisting the Ethereum Merge. Guo said he would fork the Ethereum blockchain and create another version of the proof-of-work (PoW) network. The Poloniex cryptocurrency exchange has announced it will support and list the Ethereum proof-of-work (PoW) fork dubbed ETHW from next week. This listing marks a significant player supporting the Ethereum hard fork.
The Merge is a process that will transition Ethereum from a PoW consensus to a PoS consensus. The Ethereum network runs on a PoW model allowing miners to create new Ether by using vast amounts of electricity to solve puzzles. The Merge will make Ethereum faster and more scalable.
However, The Merge has created concern for Ethereum miners such as Guo, who will soon be out of business. Therefore, he is planning the launch of ETHW, allowing individuals to mine a form of Ether. Poloniex is now supporting this initiative.
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Poloniex published a blog post saying it intended to support the Ethereum upgrade and its hard fork fully. The exchange will allow users to trade ETH for ETHW. The exchange will also list ETHS, a crypto asset that represents the proof of stake Ethereum after the Merge is successful.
If the Merge occurs in September as planned, Poloniex will convert all the ETHS into post-merge ETH. If Guo and his fellow developers fail to fork the Ethereum chain by them, Poloniex will delist ETHW and its associated assets.
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After the news of this listing, Justin Sun, the primary investor at Poloniex, celebrated the development. He said that the PoW consensus was a leading factor contributing to the expansion of the Ethereum network. It was also willing to support the growth of the community.
Guo, alongside the other Ether miners, are optimistic that the creation of ETHW will support the continued practice of mining a version of Ethereum. However, the new Ethereum fork will run on a separate network and cryptocurrency from Ethereum. Moreover, it is launching with zero utility unless developers, the market, and users adopt it.
The support of this token by the Poloniex exchange has given it some form of credibility. However, the move is not surprising as Justin Sun has had a strenuous relationship with Ethereum and its co-founder, Vitalik Buterin.
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